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CCA signs on with logistics provider - BlueLinx puts Global Direct division in the distribution business
Article Number: 2201
 
By Steven Feldman
Cincinnati– CCA Global Partners recently inked an exclusive deal with $5 billion logistics provider BlueLinx to distribute hardwood, laminate and cork flooring sourced by CCA’s Global Direct arm. By virtue of this agreement, groups such as Carpet One Floor & Home and Flooring America/ Flooring Canada now have the ability to offer carton service to their members throughout North America.

According to Jim Gould, chief product officer, providing carton service requires a sophisticated infrastructure that combines multiple warehouses and an outside sales force. “It would have taken us years to get to this point if we did it ourselves,” he said. “BlueLinx is a distributor on steroids.”

BlueLinx was originally the logistics division of Georgia Pacific. “Now that it is independent, it is left with a logistics and distribution model that is very large, powerful and efficient,” Gould said.

In fact, BlueLinx is North America’s largest distributor of building products with 800 trucks making a collective 4,000 stops a day. “We are a world-class provider of world-class services and business solutions,” said Steve Macadam, CEO.

He explained how this partnership benefits members of CCA’s groups. With the ability to now purchase quantities ranging from a single carton to multiple containers, retailers can drastically reduce their inventory and free up cash. Delivery is on a fee-for-service basis. A CCA-specific team was put in place at BlueLinx headquarters.

Effective Aug. 1, BlueLinx was delivering Global Direct product from six warehouses in Seattle, Los Angeles, Chicago, Baltimore, Atlanta and Jacksonville, Fla. Gould said four more warehouses would be added by year’s end. The public company operates 70 facilities across North America.

“We view this agreement as a unique distribution model that will allow us to grow and become better partners with our current suppliers,” Gould said. “This is not a strategy to eliminate any of our good partners but rather to look at creative, new ways to bring product to our members. BlueLinx makes Global Direct a true distributor of flooring.”

Launched two years ago, Global Direct has become CCA Global’s fourth-largest hardwood supplier and one of its six laminate suppliers. Sales are now eclipsing $24 million.
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Date
8/8/2007 9:03:19 AM
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